International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Thursday proposed the appointment of Daniel Katz, chief of staff to U.S. Treasury Secretary Scott Bessent, as first deputy managing director -- widely regarded as the IMF's number two leadership post.

The proposed appointment, effective Oct. 6, is subject to approval by the IMF's Executive Board, the IMF said in a statement.

Katz, who has a long association with the Treasury Department that stretches more than a decade, is the principal advisor to Bessent on a wide range of domestic and international matters, according to the statement. He consulted for Bessent's hedge fund before being named Bessent's chief of staff in U.S. President Donald Trump's current term, according to local media.

"Dan is known to his colleagues for his passion for policy work, particularly the intersection of economic policy and international relations. He is highly respected for his solution-oriented approach, collaborative leadership style, and willingness to bring fresh perspectives to difficult issues," Georgieva said in nominating Katz.

The announcement came nearly two months after the IMF chief said that Gita Gopinath is set to leave her post as the IMF's first deputy managing director at the end of August and return to Harvard University.

Traditionally, European countries have selected the fund's managing director, while the U.S. Treasury Department has played a key role in recommending candidates for the position of first deputy managing director.